GoPro’s Share Tumble 12% on Disappointing Holiday Forecast
Action camera-maker GoPro forecast a weak holiday quarter on Wednesday, sending its shares down nearly 12% to $9.40 in extended trading.
The company said it expected fourth quarter revenue of $470 million, plus or minus $10 million. Analysts on average expected $521.2 million, according to Thomson Reuters I/B/E/S.
Excluding items, the company expected fourth quarter earnings between 37 cents and 47 cents per share, while analysts had forecast a profit of 57 cents per share.
While GoPro launched its Hero 6 camera, the bleak holiday-quarter outlook could bring to fore the production issues with Hero 5 camera that had hurt sales earlier.
The company reported a better-than-expected quarterly profit on Wednesday, boosted by increasing demand for its cameras and drones.
Excluding items, the company earned 15 cents per share, blowing past the analysts’ estimate of 2 cents, according to Thomson Reuters I/B/E/S.
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The company reported a net income of $14.7 million, or 10 cents per share, in the third quarter ended Sept. 30, compared with a loss of $104.1 million, or 74 cents per share, a year earlier.
GoPro — whose cameras are worn by surfers, skydivers and other action junkies — said revenue rose to $329.8 million from $240.6 million. Analysts expected $329.81 million.